|
Procedure 1 |
Obtain
approval for the company name from the Registrar
of Companies |
|
Time to
Complete |
3 days |
|
Cost to
complete |
KES 100 per
name reservation |
|
Comment |
The reservation lasts 30 days but can be renewed
for a similar period visit
http://www.attorney-general.go.ke/compreg.htm
for more
information.
Some forms are also available for download from
the site. |
|
Procedure 2* |
Stamp the
Memorandum and Articles and a Statement of the
Nominal Capital |
|
Time to
Complete |
14 days |
|
Cost to
complete |
1% of
nominal capital + KES 2,005, stamp duty on
Memorandum and Articles of Association |
|
Comment |
With effect
from 1st January 2005 the
Kenya Revenue Authority (KRA)
took over the collection of stamp duty from the
Ministry of Lands and Housing.
As an
administrative requirement the KRA now requires
the Personal Identification Numbers of the
parties on whose behalf documents to be stamped
with duty are submitted. Documents have to be
first assessed by the stamp duty office before
payment can be processed by the KRA's specified
banks. The process has lengthened to about 2
weeks as the Stamp Duty office has to receive
confirmation of payment from the bank after
clearance of funds. Bank handling charges of
KShs 100 per transaction are also payable. Visit
http://www.kra.go.ke/notices/noticestampduty060105.html
for more
information |
|
Procedure 3 |
Pay stamp
duty at bank |
|
Time to
Complete |
1 day
(included in the previous procedure) |
|
Cost to
complete |
KES 100 bank
commission |
|
Comment |
Visit http://www.kra.go.ke/notices/noticestampduty060105.html
for more information |
|
Procedure 4 |
Declaration
of Compliance (Form 208) is signed before a
Commissioner of Oaths / notary public |
|
Time to
Complete |
1
day |
|
Cost to
complete |
Kshs 200 |
|
Comment |
The Advocate
incorporating is required to sign a Company Form
208 which accompanies the documents to be
submitted to the Registrar of Companies. This
form is a Declaration of Compliance with the
requirements of the Companies Act.
NB: The Law
society of Kenya is the premier bar agency and
legal development agency for Kenyan advocates
Visit
http://www.lsk.or.ke/
for details. |
|
Procedure 5 |
File deed
and details with the Registrar of Companies at
the Attorney General's Chambers in Nairobi |
|
Time to
Complete |
21 days |
|
Cost to
complete |
see comments |
|
Comment |
Submit
stamped Memorandum and Articles of Association,
particulars of directors and secretary (Form
201), statement of capital, notice of proposed
registered office (Form 203), declaration of
compliance (Form 208) and the prescribed
registration fees. Registration fees are:
Kshs2,200 for the first Kshs100,000 and Kshs120
for every Kshs20,000 after the first
Kshs.100,000 subject to a maximum of
Kshs.60,000. Filing fee for 3 forms is Kshs.600.
It takes 20-25 days to get the approval. Visit
http://www.attorney-general.go.ke/compreg.htm
for more
information
|
|
Procedure 6 |
Register
with the Kenya Revenue Authority Tax Department
for a PIN |
|
Time to
Complete |
1 day |
|
Cost to complete |
no charge |
|
Comment |
The PIN is
valid also for VAT, PAYE, and local service tax.
File certificate of registration and a copy of
the Memorandum and Articles of Association.
NB: PIN is
available from KRA headquarters and its
affiliate offices. For more information please
visit
http://www.kra.go.ke/incometax/incometaxdownloadableforms.html |
|
Procedure 7 |
Register
with the VAT office |
|
Time to
Complete |
1 day |
|
Cost to
complete |
no charge |
|
Comment |
VAT office
is in the
KRA offices at the Times Tower building,
Nairobi or its regional offices. |
|
Procedure 8 |
Apply for a
business permit |
|
Time to
Complete |
1 day |
|
Cost to
complete |
see comments |
|
Comment |
The fee
varies by type of business, number of employees
and size of business premise. Fee is payable to
the local authority’s, Licensing Department. The
Authority will issue business permit. Cost: Kshs
5,000 (medium trader, shop or retail service
from 5-20 employees and/or premises from 50-300
sqm fair location)
NB: The
Local authority for Nairobi is the Nairobi City
Council |
|
Procedure 9 |
Register
with the National Social Security Fund (NSSF) |
|
Time to
Complete |
1 day |
|
Cost to
complete |
No charge |
|
Comment |
NSSF provides the employee with a lump-sum
retirement benefit. Historically, the rate of
return paid by the State is considerably less
than that achieved by private schemes but
participation is mandatory. The employer pays a
standard contribution of approximately 1% of
salary subject to a maximum of Shs.400 per
month. One half of the contribution is
deductible from the employee's salary. The
precise amount of the contribution (where less
than the maximum) is determined by reference to
salary bands. |
|
Procedure 10 |
Register
with the
National Hospital Insurance Fund (NHIF) |
|
Time to
Complete |
1 day |
|
Cost to
complete |
No charge |
|
Comment |
The employee
contributes a fixed sum to the NHIF, which must
be deducted by the employer from the employees'
salary. The maximum contribution is Shs.320 per
month. The contributions are used to offset the
costs of medical treatment but they only cover a
fraction of actual costs. Hence, most companies
put in place medical insurance cover for
employees. |
|
Procedure 11 |
Make a
company seal after a certificate of
incorporation has been issued |
|
Time to
Complete |
2 days |
|
Cost to
complete |
KES 2500* |
|
Comment |
The client
may liaise with the advocate in the production
of the company seal |
